Abbott, Hegar propose moving, reining in tax-fueled trust funds

$1.5 million was provided by the trust fund program to repair the Alamodome’s roof as part of the reimbursement for the 2008 Men’s Final Four (Photo: William Luther/SAEN)

AUSTIN – In another move to get the state’s arms around its many economic development programs, Gov. Greg Abbott proposed Thursday that his office oversee tax-fueled special events funds that are now within the state comptroller’s purview.
Comptroller Glenn Hegar made the announcement jointly with Abbott, saying it would allow him to focus on his tax-collecting agency’s main functions.
“Since being sworn into office, I have been conducting a top-down review of this agency to ensure Texas taxpayers can trust the Comptroller’s office to be a model of efficiency, transparency and accountability. My top priority is protecting Texas taxpayers,” Hegar said.
“To achieve that goal, I believe this agency must renew its focus on the core functions of the Comptroller and reform programs that fall outside that focus. Governor Abbott and I both believe these programs, including the Major Events Trust Fund and Events Trust Fund, would operate more efficiently, more effectively and with greater accountability to taxpayers within the Governor’s Economic Development and Tourism Division,” Hegar said.
Lawmakers last year voted to put new limits on the Major Events Trust Fund and Events Trust Fund, which return extra tax revenue generated by special events to communities that host them. The money is meant to allow communities to compete for events with out-of-state venues and to help defray the cost of hosting.
The Legislature made changes in the program after eyebrows were raised over the expenditure of the money on such things as stadium improvements, including giant video screens. Lawmakers also expressed concern that the trust funds were being used for events beyond those that are strictly competitive with other states.
Abbott and Hegar said they want to work with lawmakers to reform and restructure the programs.
“As part of our broader efforts to maximize efficiency and accountability in state government, Comptroller Hegar and I have identified weaknesses in Texas’ economic development programs and provided a roadmap for reform that will optimize our state’s economic development strategy,” said Abbott. “The transfer of these programs to the Governor’s Economic Development and Tourism Division will leverage our existing economic resources and promote Texas as a world-class commercial destination nationally and globally.”